Mortgage Rate Rises

[Kamakazie!]

Negative equity is when the value of the house is less than the outstanding mortgage. On a 35% LTV you are never going into negative equity. An 80s style crash wouldn't even get you close to that point.

 

[413x]

Thank god for mortgages. Cheaper than rent even with the increase, just got to suck it up for short to medium term.

Rents are absolutely shocking. Cannot believe how much they've gone up in 2 years

 

[MatsyLR]

Rents are absolutely shocking. Cannot believe how much they've gone up in 2 years

A friend at work's rent is about about £700 for just her in a ex council 2 bed in Ryhope. We only make around 1300-1350 take home pay! Its crazy.

 

[jonneymendoza]

Rents are absolutely shocking. Cannot believe how much they've gone up in 2 years

Mines about to go up on next renual. But guess what?

I bought my own place so they can go do one once my tenancy ends hehe

 

[413x]

Mines about to go up on next renual. But guess what?

I bought my own place so they can go do one once my tenancy ends hehe

Congrats!

Remember that feeling. Moving out of 1 bedroom flat with kitchen less than 2m*2m (literally you could fit 9 washing machines in it and there would be no floor space left), bath and toilet so old they were yellowing, electric heating with half not working and a front door handle that fell off in my hand one day locking us out paying 600ppm.

Then to our 3 bed detached for just 200ppm. Felt amazing to say "sorry, not renewing in your **** hole".

 

[Surveyor]

Congrats!

Remember that feeling. Moving out of 1 bedroom flat with kitchen less than 2m*2m (literally you could fit 9 washing machines in it and there would be no floor space left), bath and toilet so old they were yellowing, electric heating with half not working and a front door handle that fell off in my hand one day locking us out paying 600ppm.

Then to our 3 bed detached for just 200ppm. Felt amazing to say "sorry, not renewing in your **** hole".

Presumably you mean £200/month more.

 

[Deleted User 298457]

Congrats!

Remember that feeling. Moving out of 1 bedroom flat with kitchen less than 2m*2m (literally you could fit 9 washing machines in it and there would be no floor space left), bath and toilet so old they were yellowing, electric heating with half not working and a front door handle that fell off in my hand one day locking us out paying 600ppm.

Then to our 3 bed detached for just 200ppm. Felt amazing to say "sorry, not renewing in your **** hole".

Why would you need 9 washing machines?

Money laundering?

 

[413x]

Why would you need 9 washing machines?

Money laundering?

Presumably you mean £200/month more.

I just thought a washing machine was a good way to visualise the space. Everyone knows how big one is.


Yes! 200ppm is a loooooong way off unfortunately!

 

[Efour]

Do you mean a launderette size one or a Bosch series 8 10kg load 1600rpm model?
Or one of those top loaders you seen in Roseanne and other 80s American sitcoms?

 

[TNA]

Mines about to go up on next renual. But guess what?

I bought my own place so they can go do one once my tenancy ends hehe

Congrats Jonney mate. Your gona love it

 

[jonneymendoza]

Congrats Jonney mate. Your gona love it

Already torn the place down!!

 

[ChrisD.]

My mate moved out of a rented 2 bed flat last March, rent has since gone from £600 to £900!

 

[adam cool dude]

I was paying £400 a month for a 2 bed flat. That was in 2007 though. £617 adjusted for inflation so prices haven't really gone up much. It is just Mortgages have been unrealistically cheap for a long time.

People forget that when you are renting you are also paying for maintenance of the property and profit for the owner because after all he is lending you his house.

 

[Curlyriff]

A friend at work's rent is about about £700 for just her in a ex council 2 bed in Ryhope. We only make around 1300-1350 take home pay! Its crazy.

That is same as a room in shared accomodation around this way and people like Nurses for NHS or supermarket workers are only on take home of around £1400 ish. A 2 bed 550ft2/50m2 house is about £1100, so if you are say a parent with 1 teenage child you are paying out £1100 for rent and then bills on top! There is no way that is viable for people around here.

 

[Curlyriff]

I was paying £400 a month for a 2 bed flat. That was in 2007 though. £617 adjusted for inflation so prices haven't really gone up much. It is just Mortgages have been unrealistically cheap for a long time.

People forget that when you are renting you are also paying for maintenance of the property and profit for the owner because after all he is lending you his house.

Sorry but where are you suggesting you can get a a 2 bed flat for £617? Because rent around here in 2018 was £700 for a 2 bed house and are now £1100. That is 4yrs with a £400 increase! In 2009 when I brought my 2 bed flat the neighbour was renting theirs out at £750 (different town to where I live now but still Oxfordshire), they are between £1100 to £1400 now!!. They have not rised at all in regards to what inflation is.

 

[Curlyriff]

Congrats!

Remember that feeling. Moving out of 1 bedroom flat with kitchen less than 2m*2m (literally you could fit 9 washing machines in it and there would be no floor space left), bath and toilet so old they were yellowing, electric heating with half not working and a front door handle that fell off in my hand one day locking us out paying 600ppm.

Then to our 3 bed detached for just 200ppm. Felt amazing to say "sorry, not renewing in your **** hole".

Funny thing is new 2 bed houses are about 2.4m x 2m and deemed large enough for a family of two adults and 1 child. It really is mental how small properties are in this country.

 

[adam cool dude]

Sorry but where are you suggesting you can get a a 2 bed flat for £617? Because rent around here in 2018 was £700 for a 2 bed house and are now £1100. That is 4yrs with a £400 increase! In 2009 when I brought my 2 bed flat the neighbour was renting theirs out at £750 (different town to where I live now but still Oxfordshire), they are between £1100 to £1400 now!!. They have not rised at all in regards to what inflation is.

I was replying to the post above which like myself are living in non commuter belt areas where housing is cheaper.

 

[Curlyriff]

I was replying to the post above which like myself are living in non commuter belt areas where housing is cheaper.

I am living in a non-commuter belt area with some of the cheapest housing in the county because it is not reasonably commutable. But your blanket statement had zero context and looked like it was suggesting rent has not incresaed in the last 15yrs, when in reality it has increased from 50-100% depending on region across the UK as a whole.

Even looking at places like Barnsley whom I have friends there and are cheaper rent has almost doubled. When you are on minimum wage that is still a big hit.

Here is the map for commuter towns, it also really good in terms of giving some solid principles where you can see the effect of living closer as a commuter town generally or a particular affluent area:

London's Best Commuter Towns - Compare Online - TotallyMoney

London's best commuter towns based on travel time, season ticket cost, house prices and life satisfaction ranked. Updated for 2019.

www.totallymoney.com

 

[413x]

Funny thing is new 2 bed houses are about 2.4m x 2m and deemed large enough for a family of two adults and 1 child. It really is mental how small properties are in this country.

Yeah in some ways it's not a bad thing. Our little house (little for a detached) is fine for us and our stops us from accumulating too much clutter.
But I'd say I wouldn't want more than 1 kid, or none with our work from home situation as it would definitely feel small. But I did grow up in a huge house

 

[Freddie1980]

I was quoted 5.74% without a fee and 5.49% with a £995 fee on a 5 year fixed deal with a LTV of under 60% from NatWest on Wednesday. My existing rate is 2.1% for comparison.